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Surprise, Arizona Attorney
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September 2014 Archives

Am I eligible to file for chapter 13 bankruptcy?

Individual bankruptcy filers in Arizona can typically choose between Chapter 7 and Chapter 13. Chapter 13 is sometimes referred as wage earner's bankruptcy, but it is open to those who are self-employed or who operate a business that is unincorporated as long as certain requirements are met. However, an individual may not file for bankruptcy if an earlier bankruptcy case was dismissed during the previous 180 days due to the person's failure to appear in court or failure to comply with court orders. Furthermore, corporations and partnerships may not file for bankruptcy under Chapter 13.

How to file for bankruptcy

Debtors in Arizona may benefit from some information about filing for bankruptcy. In order to receive the protections provided by bankruptcy status, debtors are required to attend a government-approved credit counselor within 180 days before filing. In addition, before any outstanding balance can be discharged, applicants are required to complete a debt education course after filing for bankruptcy.

Options for eliminating high credit card debt

As Arizona residents may know, paying the minimum amount due on a credit card balance may be counterproductive. While there are times it might not be possible to pay more, the amount of interest paid on credit card debt may approach the original amount owed when a person pays the lowest amount possible. Hypothetically, someone with $18,000 of debt at approximately 18 percent interest paying about $400 per month would take about 76 months to pay it off. Additionally, the individual would pay about $12,200 in interest on the original $18,000.

Medical bills and credit score changes

Arizona families struggling with medical debt may be relieved to know that FICO will be changing the weight of medical debt in the determination of one's credit score. An estimated one-third of Americans deal with difficulties in paying medical debts, and this is also the leading reason for bankruptcy filings in the nation. It is reported that approximately 64 million individuals have medical bills in collections listed on their credit reports.

Dan R. Dodds Dan R. Dodds

At the Dodds Law Firm, I focus my practice on the needs of individuals who have suffered losses because of abusive, deceptive or unfair conduct by others. I also provide comprehensive counsel in all matters related to Chapter 7 and Chapter 13...Read More

The Dodds Law Firm, PLC | 14239 West Bell Road, Suite 108 | Surprise, AZ 85374 | Toll Free: 877-827-9906 | Phone: 623-208-6098 | Map & Directions